Net income reported in the income statement for the current year was $275,000. The depreciation registered in fixed assets and the amortization of patents in the year were $40,000 and $9,000, respectively. 

The balances of the current asset and current liability accounts at the end and beginning of the year are as follows:

	Fin	Beginning
Money	$50,000	$60,000
accounts receivable	112,000	108,000
inventories	105,000	93,000
Prepaid expenses	4500	6,500
Accounts payable (merchandise creditors)	75,000	89,000

What is the amount of cash flows from operating activities reported in the statement of cash flows prepared by the indirect method?

Answer rating: 100% (QA)

To calculate the cash flows from operating activities using the indirect method we need to start wit... View the full answer